Teach A Man To Fish And.........

Saint,

somehow i overlook this thread, but today went through all your posts here.

It is really a fabulous effort from you to bring all of the TA one by one with examples.

This thread will be come "Mother of All Threads" one day. I hope it will become a One-Stop Learning place for all who wish to learn TA.

again.. great going my friend...

its truly Saintly Saint here for us....

Satya....

Thank you Saint for your efforts.

Just found out abt this thread.Looking fwd to your posts.

Regards,
Jay Raj

dear saint,
you are a real saint helping people to gain knowledge without expecting anything in return. Keep it up. May God shower the choicest blessings on you.

TRADING using TRENDS,PIVOTS,SUPP/RES

THE BUY SET-UP

Okay,now that we know what an Uptrend is,and that come what may,we will stick to our rules,which is:First detect the change in trend which requires a higher pivot high and low,then once we are in an uptrend,we BUY DECLINES.

Now comes our next point of worry........yes we got our uptrend,and now the declines.But when do we buy?Do we buy on the first day?Is there anything else we are looking for before we come to that decision?

Have a look at the chart of EDUCOMP below.We have a decline after that big bar.Bearish candle No 1,we do nothing.We wait.Bearish candle No 2,we do nothing.Bearish candle no 3,things looking more and more juicy.Then we get that bullish candle.That first bullish candle is still making lower highs and lows,but is giving us an indication that bulls are gaining in strength.Now we are ready to strike,and yet,we do not move.We now look to buy,we do not buy as yet.We buy when the next candle takes out the previous candle's highs.

We are in the trade.Our stop is the low of that pivot ie 254-2(to give it some room)=252

In EDUCOMP,we are getting our next buy set up as of now.We have three bearish candles and then that bullish candle so far reflecting a change in sentiment and therefore a possible change in direction.And like before,a buy set up means we look to buy,we do not buy as yet.When the next candle takes out this week's high,then the trade is triggerred.

yes i think I am clear about it. So when we stalk a stock that is moving up from a down trend we do not take position. We wait for it to rise, retreat and then we buy if it takes a turn around higher than the previous pivot low. Am I following it so far.

Another question- when a trend is rising and it turns around for a very very minor correction will it still be called a pivot or how much fall is required.

Sorry for asking too many questions but i like to be very clear in the learning process. Let me know when i start bugging you .

Rgds
Rahul